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South Korea

US Revised Tariffs (%)

25

Ease of doing business

theboardiQ Tariffs Dashboard:

Powering Mutually Beneficial Global Trade.

 

Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.

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Revised Tariff %
Original Tariff %
Country Tariff Rate %
Share of US Imports % (1 implies <1%)
25
25
5.7
4
Exports (in USD Bill.) 2024
Imports (in USD Bill.) 2024
Balance (in USD Bill.) 2024
65.54
131.55
-66.01

Implications

As of January 27, 2026, trade relations between the US and South Korea have reached a critical flashpoint. President Donald Trump has announced a sharp reversal in trade policy, moving to hike tariffs back to 25% due to delays in the South Korean legislature regarding a previously agreed-upon trade deal.


## 1. Latest US Tariffs Update (January 2026)


Following a period of relative stabilization after the October 2025 summit, the US administration has signaled a move to increase tariffs from 15% to 25%.


  • Reasoning: The US cites a failure by the South Korean National Assembly to ratify the "Historic Trade Agreement" reached in 2025, which included a $350 billion investment pledge into US sectors like shipbuilding and semiconductors.

  • Targeted Sectors: Primarily Automobiles, Lumber, and Pharmaceuticals.

  • Effective Status: As of today, the administration has posted the intent on social media; formal executive notices are expected imminently unless Seoul fast-tracks the pending legislative bills.


## 2. Major Companies Impacted


The sudden policy shift has immediately affected the market valuation of Korea’s industrial giants.

Company

Primary Impact

Hyundai & Kia

Face a jump from 15% back to 25% on US-bound exports. Shares fell ~4% in early trading on Jan 27.

Samsung Biologics / Celltrion

High exposure in the pharma sector; however, recent US-based contract manufacturing acquisitions may provide a buffer.

Samsung Electronics / SK Hynix

While not the primary target of this specific 25% hike, they face ongoing pressure to move memory manufacturing to US soil to avoid potential 100% tariffs suggested by the Commerce Dept.

Hanwha Ocean / HD Hyundai

Impacted via the $350B investment fund stalemate, which targets shipbuilding and energy cooperation.

## 3. GDP & Balance of Trade (BOT) Impact


South Korea’s economy is currently navigating a fragile recovery, with the following outlook:


  • GDP Impact: Real GDP growth for 2026 was projected at 1.8% to 2.0%. Analysts warn that a return to 25% tariffs could shave 0.2% - 0.5% off this growth if export volumes to the US (nearly 20% of total exports) continue to contract.

  • Latest Country BOT (YTD 2026):

    • Full Year 2025: South Korea posted a record trade surplus of $78 billion globally, but shipments to the US fell 3.8% due to the earlier 2025 protectionist measures.

    • January 2026 YTD: Preliminary data shows a narrowing surplus as the Korean Won (KRW) weakens (trading near 1,470 per USD), making imports more expensive while the new tariff threat dampens export optimism.


## 4. SWOT Analysis: South Korea-US Trade (2026)

Strengths

Weaknesses

High global demand for Korean high-end semiconductors (AI boom). Strong manufacturing base in EVs and batteries.

Heavy reliance on the US market (27% of auto exports). High vulnerability to US executive policy shifts (IEEPA).

Opportunities

Threats

"Friend-shoring" through the $350B investment fund could secure long-term US market access. Expansion into US shipbuilding MRO.

Escalating "Reciprocal Tariffs" if the National Assembly remains deadlocked. Competition from Japan/EU who currently hold 15% tariff deals.


US Revised Tariffs

Country Tariffs

Balance of Trade

Commercial Guide

Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals

Tariff Rate for US

World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.

US Imports Guide 

United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.

Investing in USA

theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters

Sources : ForbesUSDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia International Trade Administration

theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.

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